HTC, the world's No.5 smartphone brand, said it will buy back up to 15 million shares in a deal worth as much as T$7.5 billion ($230 million), a move analysts said was aimed at arresting its falling share price.

HTC would spend between T$280 and T$500 per share between Feb. 10 and April 9 to implement the buyback, to maintain shareholder equity holdings and the company's reputation, it said in a statement to the Taiwan stock exchange on Tuesday.

"At this level, HTC has no choice but to implement this share buyback," said Bonnie Chang, an analyst at Yuanta Securities. "Investors are losing confidence in the company very quickly, especially in the face of rising competition."

HTC shares have fallen 40 percent since June 2009, when they hit a more than six-month high above T$517. Since the beginning of this year, HTC shares have retreated about 19 percent on concern over intensifying competition and rapid price cuts.

The company made the announcement after the Taiwan stock market closed on Tuesday. HTC shares were up by their daily limit to T$297, outperforming a 2 percent advance by the benchmark TAIEX index.

Earlier this month, research firm IDC said Motorola had overtaken HTC as the world's fourth-biggest smartphone brand by market share, with HTC showing the worst performance among the world's top five smartphone brands.

Other electronics brands, including Samsung Electronics and LG Electronics, have also set their sights on the fast-growing smartphone sector.

Samsung and LG join a field crowded with cell phone brands including market leader Nokia and PC brands such as Lenovo and Dell, all jostling for a share of the sector that is expected to grow more than 20 percent this year.

HTC was the first brand to launch a smartphone running on Google's Android operating system in 2008, but rivals such as Motorola and Acer have all launched or plan to launch their own models using the system.

"The key question now for HTC is how can they compete against titans like Samsung and Motorola," said Yuanta's Chang. "They've had an Android phone for a while now, but Motorola simply came along and overtook HTC."

Source:Reuters